Does operating performance really improve following financial institutions merger : a case of Malaysian banks

2007 ◽  
Vol 4 (1) ◽  
pp. 77
Author(s):  
Wan Mansor Wan Mahmood ◽  
Rashidah Mohamad
Keyword(s):  
Performance Measures ◽  
Financial Institutions ◽  
Operating Performance ◽  
Profit Margin ◽  
Sample Period ◽  
Bank Mergers ◽  
Loan Loss ◽  
Return On Equity ◽  
Savings And Loan ◽  
The Us

This study examines whether the recent bank mergers exercise in Malaysia create synergies reflected in corporate operating performance measures. Four accrual operatingperformance measures are used, i.e. Return on Asset (ROA), Return on Equity (ROE), Profit Margin (PM), and Earning Per Share (EPS). Using a sample of eight anchor banks for a sample period beginning 1997 through 2002, the results show that bank mergers lead to significant post merger improvements, which is consistent with the findings of Neely and Rochester (1987) who also employ accrual performance measures in their study on savings and loan institutions in the us. The findings suggest that even though the mergers are 'forced' in nature, it is able to contribute to the synergistic benefits. The gain in the post-merger operating performance is likely to be due to the provisions for loan loss, which on average is much lower during the post-merger period compared to the pre-merger period. The study also finds that there is an insignificant continuance of pre-merger performance into the post-merger period.

scholarly journals Subprime Crisis – A Corporate Acquisition Opportunity?

2021 ◽  
Vol 28 (2) ◽  
pp. 20
Author(s):  
VISHAL SRIVASTAVA ◽  
SUNDER RAM KORIVI ◽  
DIPASHA SHARMA
Keyword(s):  
Cash Flow ◽  
Operating Performance ◽  
Profit Margin ◽  
Subprime Crisis ◽  
Return On Assets ◽  
Corporate Acquisitions ◽  
Return On Equity ◽  
Crisis Period ◽  
Operating Profit ◽  
Operating Cash Flow

Corporate acquisition can be considered as one of the best processes of corporate restructuring. This study is focused to evaluate the post-acquisition operating performance of listed Indian companies (acquirers) which have made acquisitions during subprime crisis period i.e. from FY 2007-08 to FY 2009-10. Paired sample t-test has been used on four operating performance indicators i.e. Return on Equity(ROE), Return on Assets (ROA), Operating Profit margin (OPM) and Operating Cash flow to Net Sales ratio (OCF/Net Sales) to check whether operating performance of acquirers has significantly improved post-acquisition. This study has revealed that there is no significant improvement in firms’ operating performance based on financial parameters i.e. Return on Equity (ROE), Return on Assets (ROA) and Operating Profit Margin (OPM), post corporate acquisitions made during subprime crisis period. The study finds that there was negative impact based on these parameters. Though Operating Cash Flow to Net Sales ratio has improved significantly for the companies which have made acquisition in FY 2007-08 and FY 2008-09 but similar findings could not be achieved for FY 2009-10. This study will find its significance in present scenario wherein corporate acquisitions are seen as the fastest way to achieve growth. Corporate world may derive its growth strategy from this study.   

scholarly journals A Study on Merger and Operating Performance of Commercial Banks of Nepal

2018 ◽  
Vol 2 (1-2) ◽  
pp. 85
Author(s):  
Sajena Dwa ◽  
Ajay Kumar Shah
Keyword(s):  
Significant Role ◽  
Operating Performance ◽  
Secondary Data ◽  
Commercial Banking ◽  
Profit Margin ◽  
Sampled Data ◽  
Loan Loss ◽  
Financial Position ◽  
The Right ◽  
The Impact

<p>This study aims to find the impact of mergers on operating performance of sample merged banks. To attain the research objective, this study has taken 8 independent variables; operating profit margin, net profit margin, return on assets, return on equity, debt equity ratio, return on loan loss provision, return on staff expenses and return on operating expenses. Three cases have been taken for the study as a sample to examine whether merger has led to a profitable situation or not. Research mainly focuses on quarterly secondary data which is analyzed using paired sample t-test, correlation analysis, VIF test and regression analysis. From the analysis it is deduced that merger has no significant role in case of Nepal Bangladesh Bank and NIC Asia Bank in terms of various operational ratios, since many operational ratios have been found weaker in post-merger period than pre-merger period. But merger plays a significant role in case of Machhapuchchhre Bank where almost all operational ratios have improved in post-merger. While analyzing the situation of overall commercial banking sectors, with the help of sampled data, it is observed that largely the merger isn’t able to produce positive results for the merged entities. The study shows the reason for negative result of merger as the poor financial position of the target banks. Further the merger will somewhat act as a solution for the current problems of Nepalese BFIs. Merger will be a wise option to bring BFIs in strong and growing position and to meet the requirement of current paid up capital as per the latest NRB directive. But it also must be considered that merger in itself is not the ultimate solution to strengthen the financial position of BFIs. A lot of factors must be taken into account before finding the right partner to merge with and executing the merger.</p><p>Journal of Business and Social Sciences Research, Vol. 2, No. 1 &amp; 2, pp. 85-107</p>

scholarly journals Penilaian Kinerja Keuangan 5 Perusahaan Perbankan Terbesar Periode 2010-2012 Menggunakan DuPont System

2013 ◽  
Vol 4 (2) ◽  
pp. 834-840
Author(s):  
Theresia Lesmana
Keyword(s):  
Financial Performance ◽  
Central Asia ◽  
Financial Institutions ◽  
Financial Analysis ◽  
Profit Margin ◽  
Return On Assets ◽  
Return On Equity ◽  
Market Capitalization ◽  
Net Profit ◽  
Financial Aspect

Assessment of corporate performance can be viewed from financial aspect and nonfinancial aspect. This study attempted specifically to measure financial performance by using the DuPont system of financial analysis. DuPont system disaggregates performance into three components. They are Net Profit Margin (NPM), Return on Assets (ROA) and Return on Equity (ROE). Object of this study is five largest financial institutions based on market capitalization and go public. Those five financial institutions are Bank Republik Indonesia (Persero) Tbk (BBRI), Bank Central Asia Tbk (BBCA), Bank Mandiri (Persero) Tbk (BMRI), Bank Negara Indonesia (Persero) Tbk (BBNI) and Bank Danamon Indonesia Tbk (BDMN). The financial performance of five banks was measured for three periods, from 2010 until 2012. It was found that only Bank Negara Indonesia (Persero) Tbk is the best financial performance using DuPont System.

scholarly journals Pengaruh Net Profit Margin Return On Asset Dan Return On Equity Terhadap Harga Saham

2021 ◽  
Vol 4 (2) ◽  
pp. 741-747
Author(s):  
Anugrah Harika Putra ◽  
Nanu Hasanuh
Keyword(s):  
Financial Institutions ◽  
Stock Prices ◽  
Financial Services ◽  
Stock Price ◽  
Stock Exchange ◽  
Secondary Data ◽  
Profit Margin ◽  
Return On Assets ◽  
Return On Equity ◽  
Net Profit

This study aims to determine the effect of Net Proft Margin, Return On Assets, and Return On Equity Against the Stock Price of Companies in the Financial Services Subsector Listed on the Indonesia Stock Exchange in 2015-2018. This research has occurred a phenomenon and identification of a problem that is quite interesting. The data source used from this research is only secondary data. The selection of samples is based on the criteria and subsector companies of 17 financial institutions and samples taken by 8 companies using the purposive sampling method in the financial institutions subsector companies. This study uses the data analysis methods of classical assumptions and hypothesis testing. The results showed that partially Net Profit Margin and Return On Assets have a significant effect on Stock Prices and partially showed Return On Equity had no significant effect on Stock Prices. Simultaneously, Net Profit Margin, Return On Asset, and Return On Equity have a significant effect on stock price. Keywords : NPM, ROA, ROE,  Stock Price

ANALISIS EFISIENSI PENGELOLAAN MODAL KERJA PADA PERUSAHAAN DAERAH AIR MINUM (PDAM) KABUPATEN BANGGAI

2017 ◽  
Vol 1 (2) ◽  
pp. 21
Author(s):  
IRWAN MORIDU
Keyword(s):  
Profit Margin ◽  
Current Ratio ◽  
Return On Equity

Penelitian ini bertujuan untuk mengetahui apakah penggunaan modal kerja pada Perusahaan Daerah Air Minum Kabupaten Banggai sudah efisien selama tahun 2013 hingga 2016, data dianalisis secara deskriptif kuantitatif dengan menggunakan rasio aktivitas. Penelitian ini dilaksankan pada pada Perusahaan Daerah Air Minum Kabupaten Banggai dari bulan juni hingga agustus 2017 dengan menggunakan metode wawancara, observasi dan dokumentasi.Berdasarkan hasil penelitian dari hasil perhitungan Rasio Likuiditas yang terdiri dari Current Ratio, Quick Ratio dan Cash Ratio dan Rasio Rentabilitas yang terdiri dari Gross Profit Margin, Profit Margin, Return On Asset, dan Return On Equity, secara keseluruhan perhitungan rasio dalam pengukuran efisiensi penggunaan modal kerja pada Perusahaan Daerah Air Minum Kabupaten Banggai selama kurun waktu 2013 sampai dengan tahun 2016 adalah kurang efisien.

ANALISIS PENGARUH CURRENT RATIO, DEBT TO EQUITY RATIO, TOTAL ASSETS TURNOVER, NET PROFIT MARGIN TERHADAP RETURN ON EQUITY PADA PERUSAHAAN MANUFAKTUR DI BURSA EFEK INDONESIA PERIODE 2008-2010

MANAJERIAL ◽  
2018 ◽  
Vol 1 (1) ◽  
pp. 14
Author(s):  
USWATUL KARIMAH
Keyword(s):  
Significant Influence ◽  
Profit Margin ◽  
Manufacturing Companies ◽  
Current Ratio ◽  
Return On Equity ◽  
Financial Report ◽  
Net Profit ◽  
Equity Ratio ◽  
Level Of Significance ◽  
Observation Period

This research performed in order to test the influence of variabel, Current Ratio (CR), Debt to Equity Ratio (DER), Total Assets Turnover (TAT), dan Net Profit Margin (NPM) toward Return on Equity (ROE). Methodology research as the sample used proposive sampling with criteria as (1) Manufacturing companies that listing at JSX who provide financial report year ending 31st December during the observation period 2008 – 2010, well available at JASICA index. (2) Companies must be the listined at the beginning of the period of observation and not on the delisting until the end of the observation period. (3) The financial report include the value of financial ratios to be studied include ROE, CR, DER, TAT, and NPM. (4) At the beginning of the observation period until the end. Total of 23 samples obtained from 131 firms during the observation period of three years in the manufacturing sector. Sample amount as much 69 during the observation period of three years. Data analysis with multi linier regression of ordinary least square and hypotheses test used partial t - test, simultan F – test at level of significance 5%. Empirical evidence show as CR, DER, and TAT to have not significant influence toward ROE of manufacturing companies listing in JSX over period 2008 – 2010 at level of significance >5%. While the rest NPM to have significant influence toward ROE of manufacturing companies listined in JSX over period 2008 – 2010 at level of significance 5%. While, four independent variabel (CR, DER, TAT and NPM) to have significant influence toward ROE at level of significance 5% as 0,000%. Predictable of the four variables toward ROE is 56,9% as indicated by adjusted R square that is 56,9% while the rest 43,1% is affected by other factors is not included into the study model. 

PENGARUH NET PROFIT MARGIN (NPM), RETURN ON EQUITY (ROE), EARNING PER SHARE (EPS) DAN PRICE EARNING RATIO (PER) TERHADAP RETURN SAHAM PADA PERUSAHAAN FARMASI YANG TERDAFTAR DI BURSA EFEK INDONESIA

2018 ◽  
Vol 9 (1) ◽  
pp. 60-74
Author(s):  
Nurlia Nurlia
Keyword(s):  
Profit Margin ◽  
Return On Equity ◽  
Net Profit

Penelitian ini bertujuan untuk mengetahui Pengaruh net profit margin, return on equity, earning per share dan price earning ratio terhadap return saham pada Perusahaan Farmasi yang terdaftar di Bursa Efek Indonesia. Metode analisis menggunakan analisis regresi linier berganda. Variabel independen dalam penelitian ini yaitu net profit margin, return on equity, earning per share dan price earning ratio. Dan variabel dependennya yaitu return saham. Berdasarkan hasil uji F, net profit margin, return on equity, earning per share dan price earning ratio berpengaruh secara bersama-sama terhadap return saham pada Perusahaan Farmasi yang terdaftar di Bursa Efek Indonesia. Berdasarkan hasil uji t, net profit margin dan earning per share berpengaruh positif dan tidak signifikan terhadap return saham. return on equity berpengaruh negatif dan tidak signifikan terhadap return saham. price earning ratio berpengaruh positif dan signifikan sekaligus Dominan terhadap return saham pada Perusahaan Farmasi yang terdaftar di Bursa Efek Indonesia.    

Do regulatory bank mergers improve operating performance?

2021 ◽  
Vol 73 ◽  
pp. 152-174
Author(s):  
Abdullah Mamun ◽  
George Tannous ◽  
Sicong Zhang
Keyword(s):  
Operating Performance ◽  
Bank Mergers ◽  
Improve Operating

scholarly journals Has the Propensity to Pay Dividends Declined? Evidence from the US Banking Sector

2021 ◽  
Vol 14 (3) ◽  
pp. 103
Author(s):  
Shaojie Lai ◽  
Qing Wang ◽  
Jiangze Du ◽  
Shuwen Pi
Keyword(s):  
Banking Sector ◽  
Logit Models ◽  
Sample Period ◽  
Financial Firms ◽  
The Us ◽  
The Difference ◽  
High Level ◽  
Propensity To Pay ◽  
Financial Firm ◽  
Very High

This article examines the propensity to pay dividends in the U.S banking sector during 1973–2014. Although the propensity to pay dividends has been declining over the 52 years of our sample period, banks are consistently more likely to pay dividends than non-financial firms. Using the coefficients from logit models estimated early in the sample period to forecast the percentage of dividend payers in each subsequent year, we conclude that there has been a decline in the likelihood of paying dividends in the banking sector. However, the decline started from a very high level as compared to that of the non-banking sectors. In addition, the variables taken from the non-financial firm literature do not explain the difference between the actual and expected percentage of dividend payers in the banking sector. We also conduct exploratory analyses with bank-specific variables. Although newly included variables are significantly related to the likelihood of paying dividends, they do not explain the declining propensity to pay dividends in the banking sector.

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